VF Corporation (VFC)

Based on the data provided, VF Corporation's liquidity ratios have displayed a mixed trend over the past five years.

- The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, decreased from 2.17 in March 2021 to 1.40 in March 2025. While the current ratio has fluctuated over the period, it generally indicates that VF Corporation has had an adequate level of current assets to meet its short-term obligations.

- The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventories from current assets. This ratio has also shown a decreasing trend, declining from 1.23 in March 2021 to 0.65 in March 2025. A quick ratio below 1 may suggest some challenges for the company in meeting its short-term obligations without relying on selling inventory.

- The cash ratio, which is the most conservative liquidity measure as it considers only cash and cash equivalents to cover current liabilities, decreased significantly from 0.64 in March 2021 to 0.16 in March 2025. This downward trend indicates a reduction in the company's ability to pay off its short-term liabilities solely with its cash reserves.

In summary, VF Corporation's liquidity position has weakened over the years, as indicated by the declining trends in the current ratio, quick ratio, and cash ratio. Management may need to focus on improving the efficiency of current asset management and exploring strategies to enhance cash reserves to ensure the company can meet its short-term financial obligations effectively.

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Additional liquidity measure

From the data provided, VF Corporation's cash conversion cycle has shown variability over the past five years.

As of March 31, 2021, the company's cash conversion cycle was 101.27 days, indicating that it took an average of 101.27 days for VF Corporation to convert its investments in inventory and accounts receivable into cash flow from sales.

In the following year, the cash conversion cycle increased slightly to 103.23 days, which suggests a slower turnover of cash compared to the previous year.

By March 31, 2023, the cash conversion cycle significantly increased to 140.38 days, indicating a prolonged time period for VF Corporation to convert its investments into cash, possibly indicating inefficiencies in managing its working capital.

However, by March 31, 2024, there was an improvement as the cash conversion cycle decreased to 113.61 days, signaling a more efficient management of working capital compared to the previous year.

Lastly, as of March 31, 2025, the cash conversion cycle stood at 119.90 days, showing a slight increase from the previous year but remaining below the peak observed in 2023.

Overall, while there have been fluctuations in VF Corporation's cash conversion cycle over the past five years, the company has demonstrated efforts to manage its working capital efficiency, with some years showing improvements in converting investments into cash flow compared to others.